Consumer Loans

So you have sketchy credit and need a short-term loan to pay some bills or make an unexpected car repair? Well, the folks at Sunbelt Credit claim to be "Your Friend When You Need a Personal Loan. " I guess that's possible - if your friends loan money at 30 percent interest. That's the maximum now allowed by Florida law, but a bill working its way through the Legislature would take a bigger bite out of borrowers. Here's how: Currently, lenders like Sunbelt can charge 30 percent interest on the first $2,000 of a loan, 24 percent on the next $1,000 and 18 percent on anything over $3,000.

So you have sketchy credit and need a short-term loan to pay some bills or make an unexpected car repair? Well, the folks at Sunbelt Credit claim to be "Your Friend When You Need a Personal Loan. " I guess that's possible - if your friends loan money at 30 percent interest. That's the maximum now allowed by Florida law, but a bill working its way through the Legislature would take a bigger bite out of borrowers. Here's how: Currently, lenders like Sunbelt can charge 30 percent interest on the first $2,000 of a loan, 24 percent on the next $1,000 and 18 percent on anything over $3,000.

IF YOU'VE ever had a consumer loan, you probably were asked to buy a life insurance policy that would pay off the debt in the event of your death. It's called credit life insurance. It's also the ''nation's worst insurance rip-off,'' according to a report issued recently by two consumer groups - the National Insurance Consumer Organization and Consumer Federation of America. The two organizations have been studying the credit-insurance issue for years. Here are some of their findings:- Americans in 1990 paid more than $2 billion in credit-life premiums, but only 42 percent of that amount was paid out in claims.

Borrowers overwhelmed by private student loan debt often discover an ugly truth too late — these loans can't be discharged in bankruptcy like other types of consumer loans. A new report on private student loans by the Consumer Financial Protection Bureau and the U.S. Department of Education suggests it may be time to change that. The agencies say these loans offer so little flexibility to struggling borrowers that Congress might consider revising the bankruptcy law given today's tough economy.

Merger partners NationsBank and BankAmerica pledged Wednesday to lend $350 billion over the next decade to minorities and low- and moderate-income customers nationwide. The package includes home mortgages and other consumer loans, as well as community development money and loans to small businesses.

MIKE MYNATT, SunBank manager at the Wickham/Aurora office was chosen as top performer in business development for 1987 for the second consecutive year. He also was the top performer in consumer loans for the entire SunBank, N.A. staff.

HERE IS a recipe for financial doom: Put money in a bank earning 3 percent interest, then take out consumer loans charging you 15 percent or more. A recent study by the Consumer Federation of America, based in Washington, found that while banks have rushed to slash the interest rates they pay on consumer deposits, they have been slow to reduce the rates they charge for consumer loans. What should consumers do? They could start by taking any extra money they may have in low-interest bank accounts and using it to pay off high-interest personal loans.

THE PERCENTAGE of consumers behind in their loan payments rose moderately in the first three months this year, the second straight increase after nearly three years of declining delinquencies. The American Bankers Association, which keeps tabs on the loans, said today that a seasonally adjusted 1.82 percent of consumer loans were 30 or more days past due in the first quarter. That is up from 1.72 percent three months earlier and 1.74 percent a year ago.

Dan Palmer was named manager of the west Melbourne branch of Sun Bank. Palmer and his family are moving to Florida from New Hampshire, where he managed the Indian Head Bank and Trust Co.'s Portsmouth office. He has been in banking for more than 22 years and has extensive experience in all areas of bank lending. Palmer will replace Don Jordan, who will move to Sun Bank's Wickham/Aurora office to specialize in consumer loans.

You no longer have to wonder how many other consumers are angry with your credit-card company. The new federal financial regulator, the Consumer Financial Protection Bureau , launched a database last week that tracks complaints made by individual consumers. So far, the database is limited to a small number of credit-card complaints filed with the bureau this month. The database is in its early stages of development with additional retroactive data to be added later this summer.

A question came up about taking a loan from the 401(k) -- or maybe a hardship withdrawal. Lost job? Mortgage due? Car payment? No. The son needed braces that would cost about $5,000. Bad idea? Not necessarily, considering our economic world where credit card companies are stingy, consumer loans are tight or expensive and low home values are eliminating equity lines of credit. Taking a 401(k) loan for holiday shopping is not such a hot idea, but to cover essentials, such as braces, it could be reasonable.

Thomas Kong was among the dozens of men and women from across the country who quit their jobs and moved to Central Florida to attend a new DeLand flight school they believed could quickly help them become commercial airline pilots. Kong thought the price -- about $100,000 -- seemed a bit steep, but he was impressed by the school's slick admissions presentation, its fancy training equipment and collection of airplanes. Ohio-based KeyBank was offering loans for the full tuition and the school, TAB Express International, promised students jobs after graduation at an affiliated airline company.

WASHINGTON They're at it again. Leaders announced another bailout Tuesday: $800 billion this time. The idea is to help finance loans for consumers and push down home-mortgage rates. Of the $800 billion pledged by the Bush administration and Federal Reserve, about $200 billion is slated for holders of securities backed by consumer loans such as credit-card loans and auto and student loans. Up to $600 billion would be used to buy mortgage-backed assets from government-sponsored lenders such as Fannie Mae and Freddie Mac. Since the U.S. economy went into free fall in September, the federal government has announced hundreds of billions of dollars in bailouts and economic-stimulus packages in attempts to shore up banks and reignite the economy.

Federal Housing Secretary Alphonso Jackson has an urgent request for potential first-time buyers, especially those with limited or imperfect credit histories. When you shop for a home this spring or summer, take a hard look at the new, consumer-friendly breed of FHA mortgages now rolling into the marketplace. Equally important, be wary of the higher rates, fees and penalties that often come with loans in the "subprime" market. Jackson has a special reason for wanting to persuade first-time buyers to check out FHA loans.

SunTrust Banks Inc. on Wednesday credited tight expense controls -- including a continuing hiring freeze -- as well as falling interest rates for its improved earnings in the latest quarter. But the chief executive of the company, L. Phillip Humann, warned that while he expected his bank to perform "possibly best of class" among big U.S. banks, "we're not out of the woods yet" in the face of a sluggish economy and possible loan losses. The Atlanta-based banking company earned $1.14 per fully diluted share in the first quarter ended March 31, up 10 percent from the year-earlier period.

In this time of constant change, there are still two things that stay the same: The tax collectors want more of your hard-earned money, and you want to keep more of it for the things you need. So it pays to consider the tax consequences before you make those everyday financial decisions - whether it be to go ahead with that much-needed face-lift for your kitchen or for yourself.Be particularly mindful of how to use the tax rules to your best advantage if you are a homeowner who has sizable outstanding loans.

WASHINGTON - The delinquency rate on consumer loans and credit cards rose during the final three months of last year, as Americans' confidence in the economy and appetite for borrowing increased. The seasonally adjusted percentage of credit-card accounts 30 or more days past due rose to a 15-month high of 3.45 percent in the October-December quarter, from 3.28 percent the previous quarter, the American Bankers Association said Wednesday. A composite rate for other types of consumer loans, including auto loans and closed-end home equity loans, rose to 2.35 percent in the fourth quarter, from 2.29 percent in the third.